What is temporary recruitment finance?
Temporary recruitment finance is a form of invoice financing tailored to both recruitment agencies and timesheet related businesses. Invoice lending is designed to bridge the gap between paying temporary contractors or workers and receiving payment from the client. Recruitment finance enables applicants to release funds from pending invoices, while allowing time to be spent focusing on other areas of the business, as the debts are collected via the lender.INVOICE FINANCING EXPLAINED
How does recruitment finance work?
The simplicity of recruitment finance is what appeals to most clients, often with short term contracts and a basic percentage fee structure. Clients can borrow up to 100% of the outstanding invoice balance and do not have to recoup the funds themselves, meaning the lender will chase debts and return remaining balances (minus any fees.) There are four main steps in recruitment finances;
- Invoice your customer
- Receive up to 100% of the value of the invoice
- Lender collects payments of invoice from the customer directly
- Any remaining balances are then paid to you minus fees
Benefits of recruitment financing
- Invoicing financing is a quick way to raise funds, often agreeing funds 24 hours after the original invoice has been raised.
- It saves hours of admin and back office work, due to the lender chasing up outstanding invoices.
- The agreements can be flexible, often working on a one month rolling contract, allowing clients to cancel at short notice.
- Debt protection can be offered to protect against customer insolvency.
Who uses recruitment invoice finance?
Recruitment financing is commonly used in agencies who issue credit agreements between 60 and 90 days. They find the use of a third party to manage administration appealing.
What are the costs and fees involved with recruitment finance?
The agreed fee is commonly a percentage rate charged based on your turnover. This will vary from business to business, to get a personalised quote speak with our experts.QUOTE TODAY
How long will it take to arrange recruitment finance?
Funds can be agreed within 24 hours, however an established advisor will take time to understand your business wants and needs prior to application. Repeat invoicing financing from there on, is an effective and quick way of borrowing.
How can Merchant Advice Service help?
At Merchant Advice Service we work with a network of expert recruitment finance advisors. Our team are UK based and can provide advice on alternative financing for businesses including; invoice finance, asset finance, factoring and much more.APPLY TODAY